The Hindu Business Line : Re strengthens; gilts up

Mumbai: THE rupee ended stronger on Thursday at 47.6250/6300 against the dollar as compared to Wednesday's close of 47.6400/6450 in the forex markets.

The domestic unit was seen appreciating on back of good supplies of the dollar.

However, the surge in the value of the rupee against the dollar was stemmed by heavy dollar buying by State-run banks at behest of the Reserve Bank of India.

"There was a good amount of mopping up of dollar supplies at 47.63 levels,'' said a forex dealer in a private-sector bank.

The rupee opened 47.6400/6450 with the open being the intra-day low and the close the intra-day high of the domestic currency.

The forwards market was dull with no demand from importers. The six months premium ended at 3.49 per cent, unchanged from Wednesday's close and the one-year ended at 3.22 per cent (3.28 per cent).

G-sec prices moved up by 75 paise-Re 1 on account of some buying interest emerging amongst players in the medium segment papers.

However, the traded value was capped at a mere Rs 3,000 crore.

"Foreign banks, primary dealers and private banks were seen stepping in to buy. The yields were attractive for a buy,'' said a dealer in a private-sector bank, who had bought large quantums during the day.

The ten-year benchmark, 9.81 per cent 2013 paper ended 60 paise higher at Rs 126.60 with a yield of 6.26 per cent.

In the 8.07 per cent 2017 paper, the price went up by Re 1 to close at Rs 114 with a yield of 6.52 per cent.

In the inter-bank call money market, the call rates went as low as 4.50 per cent due to easy liquidity. Call rates ended at 5 per cent.

Through the LAF window, the central bank received 21 bids worth Rs 11,585 crore, all of which were accepted at the repo rate of 5 per cent.

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